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Business community disappointed as SBP maintains high policy rate FPCCI demands single-digit interest rates to boost investment & trade By Our Correspondent KARACHI: Atif Ikram Sheikh, President FPCCI, has apprised that the business, industry and trade community of Pakistan is disappointed with the monetary policy as it continues to be based on a heavy premium vis-à-vis core inflation as the State Bank of Pakistan (SBP) did not change the policy rate on its Monday meeting. Currently, inflation as per government’s own statistics, stood at 1.5 percent in February 2024; but, the policy rate is 12.0 percent as of today – which reflects a premium of 1,050 basis points vis-à-vis core inflation, he added. Read also:Ambassador Dr Jemal presides over Ethio-Pakistan Business Forum at FPCCI Lahore Atif Ikram Sheikh continued that, after deliberations across all industries and sectors, FPCCI demanded an immediate and single-stroke rate cut of 500 basis points, in the Monday’s monetary policy committee (MPC) meeting, to rationalize the monetary policy; and, align it to the vision of special investment facilitation council (SIFC) and the Prime Minister’s vision for economic growth and expor…

Business leaders criticise SBP's 'insufficient' 100bps cut KARACHI: The business community has expressed strong disappointment over the State Bank of Pakistan’s (SBP) decision to reduce the policy rate by just 1 percentage point, calling it “insufficient to address economic challenges or unlock the country’s growth potential.” President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Atif Ikram Sheikh criticised the monetary policy, stating that it continues to impose an excessively high premium relative to core inflation. “The business, industry and trade community of Pakistan is deeply disappointed with the monetary policy, as the SBP announced a grossly insufficient reduction of 100 basis points (bps) on Monday,” he said. He pointed out that inflation, according to government data, stood at 4.1 per cent in December 2024, while the policy rate remains at 12 per cent, reflecting a staggering premium of 790 basis points over core inflation. “[The] FPCCI had demanded an immediate and substantial rate cut of 500bps during Monday’s Monetary Policy Committee (MPC) meeting to align the monetary policy with the vision of the Special Investment Facilitation Counci…

Business community criticizes: SBP for holding policy rate unchanged KARACHI: The business community on Monday expressed disappointment over the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged, calling it misaligned with on-ground economic conditions. Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the decision to maintain the policy rate at 10.5 per cent was counterproductive at a time when the country urgently needs industrial revival. He said the business community had demanded a substantive cut of 3.5 percentage points to bring the rate down to 7.0 per cent. Sheikh said the SBP’s cautious stance was difficult to justify given that core inflation has stabilised at around 5.0 per cent for several months, while key economic indicators point towards the need for growth. He warned that high borrowing costs would continue to restrict access to finance for industry. He said businesses were already facing an existential crisis due to elevated energy tariffs and financing costs. Instead of the “shock therapy” needed to kick-start the economy, he said, the status quo would do little to ease the cost …

Business groups reject SBP rate hold, seek single-digit interest rates ... January 27, 2026 FPCCI demands cut to 7%; exporters, SMEs cite high borrowing costs, while overseas investors back central bank stance News Desk January 27, 2026 Business and industry leaders voiced strong disappointment over the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged at 10.5%, arguing that the move is out of step with current economic conditions and risks prolonging the slowdown in industry and exports. Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the central bank’s cautious stance ignored persistent calls from industry for a substantial rate cut to support recovery. He said the business community had sought a reduction of 350 basis points to bring the policy rate to 7%, warning that high borrowing costs were exacerbating an already severe industrial crisis. Sheikh said core inflation has remained around 5% for several months, while economic indicators point to the need for growth-oriented policy. Maintaining double-digit interest rates, he added, continues to restrict access to finance, especially for ma…

Business circles disappointed over SBP rate pause <p>• Call for a cut in next MPC meeting to support industrial recovery<br>• OICCI, PBC term SBP decision ‘balanced, prudent’</p> <p>KARACHI: The business community on Monday expressed disappointment over the State Bank’s decision to keep the <a href="https://www.dawn.com/news/2008043">policy rate</a> unchanged at 11.5pc, urging monetary easing to support growth, exports and investment amid easing inflation expectations.</p> <p>Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said that a static policy rate in double digits is highly detrimental to the country’s economic survival, adding that failure to ease borrowing costs would accelerate de-industrialisation and severely undermine export targets, which are critical for earning foreign exchange.</p> <p>Expressing concern over what he termed a disconnect between the central bank and the challenges faced by trade and industry, he said the decision to hold the policy rate was unfortunate despite expectations of a downward trend in inflation following the announcement of a US-Iran peace deal facilitated by Pakistan and gradual normalisation o…

Businesses disappointed as SBP keeps policy rate unchanged Kamran Khan says SBP decision shows Pakistan is not yet ready to stand without IMF-style constraints www.youtube.com The State Bank ofPakistan(SBP) surprised market expectations by maintaining its policy rate at 10.5 percent, signaling that the country’seconomicrecovery remains fragile despite improving macroeconomic indicators. The decision dampened hopes among businesses, industries, and exporters that were anticipating a meaningful reduction in borrowing costs. With the IMF program concluded, economic managers had been expected to pursue a more growth-oriented monetary stance. Instead, the central bank’s cautious approach suggests Pakistan is not yet ready to detach itself from IMF-style discipline. In the latest episode of On My Radar,Kamran Khansaid that the SBP’s decision reflects a broader uncertainty in the economy and underlines the fact that Pakistan is still not prepared to stand independently without IMF-style constraints. He noted that while macroeconomic indicators are improving, the overall economic framework remains vulnerable to external shocks, limiting the central bank’s ability to ease monetary pol…